Collection accounts, along with bankruptcy, foreclosure, and repossessions, are one of the most harmful items that can appear on your credit report.
And here’s something shocking: If you make a payment on a credit collections account, your credit score could be damaged!
But we have several strategies:
- First, address credit collections by attempting to negotiate with the creditors and / or collection companies for a letter of deletion.
- Start following all of the rules of credit-scoring. Know how to fix credit, and know exactly what goes into your credit score. The credit-scoring bureaus pay more attention to the things you have done in the past two years than things that happened more than two years ago. If you turn over a new leaf today, your credit report might not be squeaky clean, but you can enjoy a 720 credit score in as little as two years!
- Be sure you know all about secured credit cards and authorized user credit cards, as these are two tools that can help people with bad credit caused by collection accounts.
- Know your options if you are unable to get the collections accounts off your credit report. See the following four posts:
- Collection Accounts on Credit Report: Option #1
- Collection Accounts on Credit Report: Option #2
- Collection Accounts on Credit Report: Option #3
- Collection Accounts on Credit Report: Option #4